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By Joe Marconi in Joe's Blog0 commentsIt always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.
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By carmcapriotto
Thanks to our partner Promotive
Key Takeaways:
Effective Labor Rate [E128]: https://huntdemarest.captivate.fm/episode/128
Thanks to our partner, Promotive
It’s time to hire a superstar for your business; what a grind you have in front of you. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit www.gopromotive.com.
Paar Melis and Associates – Accountants Specializing in Automotive Repair
Visit us Online: www.paarmelis.com
Email Hunt: [email protected]
Text Paar Melis @ 301-307-5413
Download a Copy of My Books Here:
Wrenches to Write-Offs Your Perfect Shop
The Aftermarket Radio Network: https://aftermarketradionetwork.com/
Remarkable Results Radio Podcast with Carm Capriotto https://remarkableresults.biz/
Diagnosing the Aftermarket A to Z with Matt Fanslow https://mattfanslow.captivate.fm/
Business by the Numbers with Hunt Demarest https://huntdemarest.captivate.fm/
The Auto Repair Marketing Podcast with Kim and Brian Walker https://autorepairmarketing.captivate.fm/
The Weekly Blitz with Chris Cotton https://chriscotton.captivate.fm/
Speak Up! Effective Communication with Craig O'Neill https://craigoneill.captivate.fm/
Click to go to the Podcast on Remarkable Results Radio
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By nptrb
When it comes to running a profitable auto repair shop, every dollar counts.
One of the easiest places to lose money—or save it—is your parts inventory. If you’ve ever opened a drawer and found a dusty part you forgot you had (or ordered twice), it might be time to take a closer look.
Let’s walk through how smart inventory management can help you reduce costs, free up cash, and improve overall auto repair business profitability.
How Inventory Optimization Improves Your Business
It’s tempting to keep a wide selection of parts “just in case,” but overstocking ties up cash that could be used elsewhere. On the other hand, understocking means delays, missed revenue, and frustrated customers.
The key is balance.
Better inventory control for auto repair shops helps you:
Avoid over-ordering and duplicate purchases Ensure you have what you need—when you need it Track fast-moving parts vs. slow movers Improve cash flow management for auto repair shops
Surefire Tips to Optimize Your Parts Inventory
Implement an Inventory Management System
If you’re still relying on spreadsheets (or your memory), it’s time to upgrade.
A digital inventory system gives you real-time visibility, automates reordering, and keeps you organized—saving you time and money.
Tip: Many shop management tools now integrate inventory tracking with work orders and invoices. Efficiency, meet accountability.
Track Usage and Trends
Look back at the last 6–12 months of service data. Which parts are flying off your shelves? Which ones haven’t moved in ages? Use this info to stock more efficiently and avoid dead weight.
This kind of analysis supports managing expenses in auto repair shops with intention.
Set Minimum and Maximum Stock Levels
Create thresholds for commonly used items.
This prevents overbuying while making sure you’re never caught without a part during a busy week. It also helps prevent emergency orders, which often come with added fees.
Build Relationships with Reliable Suppliers
Good vendors make a huge difference.
Choose suppliers who are reliable, offer volume discounts, and can ship quickly. This can reduce your need to stock excess items and support better cost control in auto repair businesses.
Schedule Regular Inventory Audits
Set a recurring time each month to check your shelves. Catching inconsistencies early keeps your system accurate and helps you spot opportunities to cut costs.
The Ripple Effect on Profitability
When you reduce excess inventory and improve how you manage parts, you free up cash, reduce waste, and increase your shop’s flexibility.
That’s a win for your auto repair business profitability and your sanity.
Not to mention—you’ll be better prepared to handle seasonal shifts, emergency repairs, and bulk jobs when your inventory is dialed in.
Optimizing your parts inventory isn’t just about saving money on parts—it’s about streamlining your business. With better inventory management, you improve service speed, customer satisfaction, and your bottom line.
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By carmcapriotto
Thanks to our partner Promotive
In this episode of Business by the Numbers, Hunt Demarest, CPA of Paar Melis and Associates, explores the details behind what former President Trump is calling the "largest tax cut in U.S. history." What’s actually in the proposed bill? Will any of it pass Congress? And most importantly, what could it mean for auto repair shop owners and other small business operators?
Hunt unpacks what we know so far, what’s still uncertain, and how business owners can start thinking strategically. From potential expansions of the Child Tax Credit and QBI deduction to the controversial proposals of eliminating taxes on tips, overtime, and Social Security, this episode covers the key elements that matter most.
Whether you’re looking to stay informed or proactively plan for future changes, this episode offers a grounded look at what’s on the table—and what’s likely to be left off.
Key Takeaways:
What’s included in the proposed 2025 tax cut and what’s still up for debate The current status of the Child Tax Credit, QBI deduction, bonus depreciation, and SALT deduction cap Potential elimination of taxes on Social Security income—and whether that’s realistic A breakdown of the proposed “Millionaire Tax” and its implications for high earners Why the talk of tax-free tips and overtime could create major planning opportunities for business owners
What shop owners need to watch for and how to prepare as legislative discussions continue
Thanks to our partner, Promotive
It’s time to hire a superstar for your business; what a grind you have in front of you. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit www.gopromotive.com.
Paar Melis and Associates – Accountants Specializing in Automotive Repair
Visit us Online: www.paarmelis.com
Email Hunt: [email protected]
Text Paar Melis @ 301-307-5413
Download a Copy of My Books Here:
Wrenches to Write-Offs Your Perfect Shop
The Aftermarket Radio Network: https://aftermarketradionetwork.com/
Remarkable Results Radio Podcast with Carm Capriotto https://remarkableresults.biz/
Diagnosing the Aftermarket A to Z with Matt Fanslow https://mattfanslow.captivate.fm/
Business by the Numbers with Hunt Demarest https://huntdemarest.captivate.fm/
The Auto Repair Marketing Podcast with Kim and Brian Walker https://autorepairmarketing.captivate.fm/
The Weekly Blitz with Chris Cotton https://chriscotton.captivate.fm/
Speak Up! Effective Communication with Craig O'Neill https://craigoneill.captivate.fm/
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
Thanks to our partner Promotive
Credit card fees are eating into shop owners' profits — but should you be passing those costs onto customers? In this episode of Business By The Numbers, Hunt revisits the hot-button topic and shares what’s changed since 2021.
Key Points:
Why more shops are experimenting with credit card surcharges today Real-world results from shops that do charge fees — and those that don’t The hidden dangers of incentivizing cash payments How pricing strategy impacts customer loyalty and shop profitability Hunt’s no-BS recommendation for handling credit card costs in 2025
Thanks to our partner, Promotive
It’s time to hire a superstar for your business; what a grind you have in front of you. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit www.gopromotive.com.
Paar Melis and Associates – Accountants Specializing in Automotive Repair
Visit us Online: www.paarmelis.com
Email Hunt: [email protected]
Text Paar Melis @ 301-307-5413
Download a Copy of My Books Here:
Wrenches to Write-Offs Your Perfect Shop
The Aftermarket Radio Network: https://aftermarketradionetwork.com/
Remarkable Results Radio Podcast with Carm Capriotto https://remarkableresults.biz/
Diagnosing the Aftermarket A to Z with Matt Fanslow https://mattfanslow.captivate.fm/
Business by the Numbers with Hunt Demarest https://huntdemarest.captivate.fm/
The Auto Repair Marketing Podcast with Kim and Brian Walker https://autorepairmarketing.captivate.fm/
The Weekly Blitz with Chris Cotton https://chriscotton.captivate.fm/
Speak Up! Effective Communication with Craig O'Neill https://craigoneill.captivate.fm/
Click to go to the Podcast on Remarkable Results Radio
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By nptrb
Running an auto repair shop comes with a unique set of challenges, and managing your finances is a big one. Whether you’re just starting out or looking to scale, understanding cash flow management for auto repair shops is crucial to your long-term success.
In this post, we’re sharing practical, actionable strategies to help you take control of your shop’s finances and boost your auto repair business profitability—without sacrificing service quality or customer trust.
What Is Cash Flow and Why Is It Important?
Cash flow refers to the money moving in and out of your business.
For small businesses like yours, positive cash flow ensures that you can pay your team, keep parts in stock, handle operating costs, and still have something left to reinvest in growth.
When cash flow gets tight, it affects everything—from your ability to take on more jobs to your peace of mind. That’s why improving cash flow in small businesses, especially in the auto repair industry, is one of the smartest moves you can make.
Common Financial Challenges Auto Repair Shops Face
Auto repair shops often experience:
Slow payments from customers or insurance companies High up-front costs for tools, equipment, and parts Seasonal dips in customer volume Discounting services too frequently Recognizing these patterns is the first step toward smarter cash flow management in your business.
5 Financial Tips to Improve Cash Flow
Here are some real-world auto repair shop financial tips you can start implementing today:
Streamline Your Invoicing and Payments
Make it easy for customers to pay by offering digital invoicing and online payment options. Send invoices quickly, and set up automated reminders.
The faster you get paid, the better your cash flow.
Review Your Pricing Structure
If your rates haven’t changed in a while, it might be time for a tune-up.
Make sure your pricing reflects the value you provide while also supporting your auto repair business’s profitability.
Manage Inventory and Ordering
Don’t let cash get stuck on your shelves. Track what parts you actually use and only stock what’s necessary. Consider just-in-time ordering to reduce overhead.
Reduce Unnecessary Expenses
Look closely at your subscriptions, software, utilities, and vendor costs. Managing expenses in auto repair shops doesn’t have to mean cutting corners—just being more intentional with your spending.
Create Consistent Revenue Streams
Prepaid service packages, maintenance memberships, or seasonal promotions can help bring in predictable income, smoothing out your cash flow during slow periods.
With summer coming, now is a great time to offer deals on tune-ups for people who will be traveling!
Forecasting = Fewer Surprises
Cash flow forecasting allows you to plan for upcoming expenses and income. This helps you avoid financial surprises and confidently make big decisions—like hiring another tech or investing in new equipment.
Even small adjustments in how you manage your shop’s finances can have a big impact over time. Staying proactive and strategic helps ensure your shop is profitable, sustainable, and ready to grow.
Taking control of your finances starts with understanding your numbers and making small, consistent changes. By focusing on cash flow management for auto repair shops and applying smart financial tips tailored to your industry, you’ll be in a much stronger position to weather the ups and downs of your business.
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